Monday, October 8, 2012

A currency converter calculator is used by traders to calculate
the current rates of any two or more currencies. Currency trading is
also known as foreign exchange (Forex) and traders must be able to check
rates that are regularly updated because the market fluctuates rapidly.
Calculators can also be used for other purposes including making
international purchases or for other international financial
transactions, or when planning travel to a foreign country.

How a currency converter calculator worksMany
currency converter calculators are web-based or use the internet to
gather rate updates. A web-based calculator is hosted by a service
provider who may or may not charge for the service. Other calculators
that use online connections are downloaded and installed on your
computer and use your internet connection to remotely update currency
rates.

Most calculators will include 80 to 85 commonly-traded
currencies for conversion purposes. Due to the volatile nature of the
Forex markets, currency traders are generally day traders and must be
constantly aware of changes in rates and market conditions. Many serious
Forex investors use dedicated communication links that provide more
real-time results, but this option is more expensive.

For those
who are just planning a trip abroad, or who are planning to do business
with a foreign company, such real-time rates are not necessary. Indeed,
the rates can change so much from day to day that the rates must be used
with leeway when planning for anything in the future.

Types of currency convertersNot
every currency converter calculator works exactly the same way.
Although the mathematical calculations are simple and straightforward,
the visual presentation of calculators can vary significantly. Basically
though, calculators allow you to enter an amount in one currency for
conversion into another currency. Some calculators may allow you to
convert into more than one currency at a time.

Again, some
calculators are web-based while others are downloaded software. The
web-based calculators can be free or fee-based and will vary in the
frequency that they update their rates. Downloaded software may be
designed for your personal computer or for your mobile device. Software
for your computer must use an internet connection for the latest rates. A
mobile currency converter calculator is great for people on the go and
for travellers. Downloaded programs are often in the form of widgets
that can appear continuously on your display screen keeping you updated
on the latest currency rates.

The mobile currency converter is
also useful for Forex traders who often like to check on the current
rates even when they are involved in other activities. A converter
widget allows them to program what rates they are most interested in so
they can quickly scan the latest data without having to load the
application or press any keys.

Where to find currency converter calculatorsThe
internet is a great place to search for currency calculators of all
types. Simply enter a query like "currency converter calculator" using
any major search engine.

Some websites even allow you to compare
different calculators and provide reviews of the offerings available. In
most cases, online and PC-based calculators are free but mobile apps
often require a fee. Fortunately, many smart phones and other mobile
devices come equipped with built-in currency calculators. If you have MS
Excel, you can even create your own calculator and there are online
tutorials that will show you how step by step.

You may want to
double check to make sure that the currency calculator you choose is
working correctly by comparing the rates with those listed on a major
news website.